New regulation to watch

Tax on free currency funds increased to 15 percent

The rate of withholding was increased to 15 percent from 10 percent for real persons and from zero percent for legal entities. The Presidential decision on the changes aims at both increase tax income and decrease demand for foreign exchange. Investors who invest in foreign currency in the funds are taxed on foreign exchange earnings, and investors who invest in TRY are taxed on TRY earnings.

Measures on toothbrush imports extended

The Ministry of Trade has decided to open an investigation for extending the safeguard measures on toothbrush imports. The imports and the market share of imports dropped somewhat and there was a slight recovery in the economic indicators of domestic producers, according to the ministry’s communiqué on safeguard measure published in the •fficial Gazette. However, it was determined that the realization conditions of imports could be a threat to domestic production; therefore an investigation was opened, the communique says. The investigation will be completed within 9 months and be carried out by the General Directorate. If necessary, this period can be extended for 6 months.

Visa exemption agreement with Azerbaijan

The Ratification of the Agreement on Mutual Visa Exemption Decision between Azerbaijan and Turkey was published in the •fficial Gazette. According to the agreement, signed on February 25, 2020 in Baku, Turkish and Azerbaijani passport holders will be exempted from visa obligations for 90 days entery, transit, exit and temporarily stay in the other party ’s country. Turkish and Azerbaijani citizens who want to stay for more than 90 days must apply for a residence permit in advance. To take advantage of this right, the validity period of passports will be at least 6 months from the date the other party enters the country.

Support for virtual fair participation

Up to $100,000 in incentives under four items will be provided for the digital activities of companies and associations aimed at market access and marketing. The membership of companies to e-commerce web sites, virtual trade delegations and participation in virtual fairs and organizing virtual fairs were included in the scope of the support with the presidential decision published in the •fficial Gazette. E-commerce membership expenses will be supported up to 80 percent for 2020 and 60 percent in the following years in order to encourage e-exports.

Turkey grants and loans for TRNC

Signed in Nicosia and Ankara on May 25, the Economic and Financial Cooperation Agreement between Turkish and Northern Cyprus governments was rectified. According to the decision published in the •fficial Gazette, Turkey will grant TRY 1.38 billion to Turkish Republic of Northern Cyprus (TRNC.) Turkey will also provide TRNC with a USD loan equivalent to TRY 1.25 billion . In addition, Turkey will provide technical assistance to the TRNC when needed via public servants. TRNC will use TRY 650 million from the grant for defense payments, TRY 273 million for infrastructure projects and TRY 115.5 million for real sectors. •f the loan, TRY 1.15 billion will be devoted to closing the public sector deficit, and TRY 100.5 million will be allocated to the public sector.

Administrative fines for four companies

The Information Technologies and Communication Authority (BTK) has imposed nearly TRY 9,000 in administrative fines on four companies. According to the announcement of the BTK published in the •fficial Gazette, the authority decided to fine Fenix Telekom AS TRY 1,221, Target Telekomunikasyon TRY 282.77, Setafon Iletisim Hizmetleri TRY 491 and TRY 1,964 and Uptel Iletisim Hizmetleri TRY 5,000.

Free accommodation for health personnel extended

The period of free use of public guest houses and social facilities for accommodation purposes for health personnel has been extended from May 31 to August 31. A regulation had been made within the scope of the C•VID -19 measures regarding the utilization of the personnel working in public and private health institutions and organizations in social facilities used for public guesthouses and accommodation. Accordingly, healthcare staff can benefit from these facilities to save time and to respond quickly to emergency calls. They will be able to use these facilities free of charge until August 31, 2020.